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Philippines Targets P3M Condo Inventory Clearance via Expanded Housing Program
The Philippine government, through the Department of Human Settlements and Urban Development (DHSUD) and the Pag-IBIG Fund, will assist developers with excess inventory of condominium units priced at P3 million and below. This initiative aims to benefit both homebuyers with low-interest loans and developers facing market challenges.
THE Department of Human Settlements and Urban Development (DHSUD) and the Home Development Mutual Fund (Pag-IBIG Fund) said the Expanded Pambansang Pabahay para sa Pilipino (4PH) program will assist developers in clearing out their excess inventory of condominium units priced at P3 million and below. “With this new modality through Pag-IBIG Fund, we will enable private developers to sell more units, thus addressing inventory issues, while offering wider options for our homebuyers and access to best-located housing units at a lower price with low interest rates. It will be a win-win for our stakeholders — the homebuyers — and developers,” Human Settlements Secretary Jose Ramon P. Aliling said in a statement on Thursday. The main target for the program will be prime condominium locations in major urban centers. Home buyers will have access to low-interest home loans provided by the Pag-IBIG Fund. Mr. Aliling presented the proposal during a meeting of the Private Sector Advisory Council (PSAC) Infrastructure Sector Group-Real Estate, presided over by President Ferdinand R. Marcos, Jr. The session was attended by Executive Secretary Ralph G. Recto and Economy Secretary Arsenio M. Balisacan, alongside PSAC Strategic Convenor Sabin Aboitiz, PSAC-Real Estate Group Head Paolo Borromeo, Alliance Global, Inc. President Kevin Tan, Robinsons Land Corp. Chairman Lance Gokongwei, Ayala Land, Inc. President Anna Ma. Margarita B. Dy, and SM Prime Holdings, Inc. Executive Vice-President Cris Noel Torres. Ms. Dy said Pag-IBIG Fund’s low-interest home loan programs under the Expanded 4PH framework are helping the real estate industry navigate inventory challenges. The developers expressed willingness to reduce unit selling prices to qualify for the P3-million threshold. Developers are facing a softening condominium market in Metro Manila, driven by high land prices and a widening gap between property values and household incomes. — Juliana Chloe A. Gonzales
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